Magnetic cards are widely used for various applications. Monetary applications of magnetic cards include, for example, user cards for automated bank services and credit cards.
A magnetic card generally consists of a rigid card, preferably a plastic card, having a strip of magnetic tape attached to either or both sides thereof. Information, such as the name and address of a legitimate card holder, is typically printed or engraved on the card. Other information, for example a number identifying the card holder's bank or credit account, is magnetically recorded on the magnetic strip, preferably in digital form.
When the magnetic card is guided through a magnetic card reader, the magnetic strip on the card interfaces a reader head which reads the information recorded on the strip. Guided movement of the card relative to the reader head is generally provided either manually, by a user guiding the card through the card reader, or automatically. The card reader provides an output, preferably a digital electric output, corresponding to the information recorded on the magnetic strip of the card.
A computer, typically a bank or credit card company computer, communicating with a plurality of magnetic card readers as described above, compares the information read from the magnetic card with prestored data and determines whether the card is genuine, valid, etc., and if so, what options are available to the card holder. For example, the computer can determine the cash withdrawal limit or the available credit of the magnetic card holder at the time of attempted cash withdrawal or credit card purchase, respectively.
Although magnetic cards as described above are convenient and useful, these cards are susceptible to misuse and forgery. By reading the information recorded on the magnetic strip using simple magnetic readers, duplicate cards can be readily forged based on any given magnetic card known in the art. Furthermore, since considerable financial activity is performed through communication lines, magnetic card information can be picked off telephone lines without raising suspicion on the part of the card holder and the bank or credit card company. Unlike magnetic card thefts, which are generally reported shortly after occurrence and thus result in minor financial losses, forgery of magnetic cards is generally detected only after large amounts of money have been unlawfully acquired or spent.
Smartcards are well known in the art. Typically, a smartcard includes a microprocessor and means for electronic interface of the microprocessor with a preselected system, generally a protected system, for example a classified computer data base. Authenticity, validity, etc., of smartcards is generally determined by interactive communication between the protected system and the microprocessor of the smartcard. Smartcards often include a user interface, such as a miniature keyboard, whereby the user communicates with the protected unit, mainly for user identification purposes.
It is appreciated that, unlike magnetic cards, smartcards are not readily duplicated or forged using conventional devices. In fact, reverse engineering followed by Hi Tech production processes may be required in order to reconstruct an existing smartcard.